In response to the thread title:
No, I don't think paper books will ever fade away. But on the same hand, there's a time and place for everything. eBook readers are still in their infancy and they won't be replacing paper anything on a regular basis until prices come way down. eBook readers will replace paper when they become cheap enough to manufacture that publishers can effectively "give one away" with a book or magazine subscription pre-installed. When we get to this stage, then paper books (and magazines and newspapers) will move into the realm of collectible artwork, a matter of prestige and erudition. We already have artisan presses turning out
books as artwork, where people care as much about making the item as they care about the content (as opposed to the majority of modern publishers who are too busy cutting corners, selling the recent bestseller so poorly put together they fall apart after a single reading).